Bitcoin ETFs See $408 Million Inflow Led by Fidelity

Bitcoin exchange-traded funds (ETFs) saw a notable rebound with a net inflow of $408 million, reversing the previous day's outflows. This significant capital injection was driven by major market players, with Fidelity leading the way with an inflow of $184 million. Ark Investment and Bitwise also made substantial contributions, with inflows of $83 million and $64.9 million, respectively. The total assets under management for Bitcoin ETFs reached $136.68 billion, indicating a growing interest and confidence in Bitcoin as an investment asset.

The $408 million inflow into Bitcoin ETFs on Wednesday contrasted sharply with the previous day's outflow of $342.25 million. This shift in market sentiment was supported by on-chain data, which showed a net inflow of 3,860 Bitcoin coins, valued at $408 million. The lifetime tally of inflows into Bitcoin ETFs reached $52.42 billion, highlighting the sustained interest and investment in Bitcoin.

The rebound in Bitcoin ETF inflows coincided with a broader bullish sentiment in the cryptocurrency market. Bitcoin's price surged, nearing its all-time high, driven by factors such as the US-Vietnam trade deal and a surge in the US M2 money supply. The trade deal, which eliminates tariffs on U.S. goods, is seen as a favorable development for American trade and has contributed to the overall positive market sentiment. Additionally, the M2 money supply, a measure of the money flowing into the economy, jumped 4.5% in May, reaching a record $21.94 trillion. This trend is expected to support higher Bitcoin prices in the coming weeks.

The influx of capital into Bitcoin ETFs also triggered a wave of short liquidations, with traders betting against Bitcoin forced to close losing positions. This further boosted Bitcoin's price, as short traders faced liquidations totaling $248.85 million. The liquidation of short positions contributed to the overall bullish sentiment in the market, driving Bitcoin's price higher.

The positive market sentiment extended beyond Bitcoin, with other cryptocurrencies such as Ethereum, XRP, Solana, and Cardano also experiencing significant gains. Ethereum's price surged by more than 5%, while memecoins like Dogecoin and Shiba Inu saw gains of 5% to 8%. The overall crypto market cap added $150 billion in a single day, reaching $3.37 trillion, reflecting the broad-based rally in the cryptocurrency market.

The rebound in Bitcoin ETF inflows and the broader bullish sentiment in the cryptocurrency market highlight the growing interest and investment in Bitcoin. The significant inflows into Bitcoin ETFs, led by major players such as Fidelity, Ark Investment, and Bitwise, underscore the confidence in Bitcoin as an investment vehicle. The positive market sentiment, driven by factors such as the US-Vietnam trade deal and the surge in the US M2 money supply, is expected to support higher Bitcoin prices in the coming weeks. The liquidation of short positions further boosted Bitcoin's price, contributing to the overall bullish sentiment in the market. The rally in the cryptocurrency market extended beyond Bitcoin, with other cryptocurrencies also experiencing significant gains, reflecting the broad-based interest and investment in the cryptocurrency market.